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Government Exhibit # 2ND AMENDED CONSOLIDATED COMPLAINT
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EXTRACTED KEY WORDS
DEFENDANTS
GRANT THORNTON
PLAINTIFFS
GALLENT
ACT
FINANCIAL STATEMENTS
BUSINESS
STOCK
SECURITIES
MATERIAL FACTS
REPORT
REVENUE
MEMBERS
REGISTRATION STATEMENT
CLASS PERIOD
MISLEADING
MISREPRESENTATIONS
COMMON STOCK
EXCHANGE ACT
SUBSIDIARIES
S-L REGISTRATION STATEMENT
DEVELOPMENT COSTS
PROSPECTUS
TRANSACTIONS
CAPITALIZED SIMULATOR DEVELOPMENT
RELATED DEFENDANT BUSINESS
LEONARD LABIAK
LARRY PARKER
TRAINING SYSTEMS
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Richard A. Lockridge (#64 117) R. L. Knuth (#3625)
Patricia A. Bloodgood (#157673) David W. Scofield (#4140)
Earle F. Kyle, IV (#225290) PARSONS, DAVIES, KINGHORN
SCHATZ PAQUIN LOCKRIDGE & PETERS
GRINDAL & HOLSTEIN P.L.L.P. 185 So. State Street, #7OO
2200 Washington Square Salt Lake City, UT 84111
100 Washington Avenue South Telephone: (801) 363-4300
Minneapolis, MN 55401 Liaison Counsel for Plaintiffs
Telephone:(612) 339-6900
Lead Counsel for Plaintiffs
Additional Counsel on Signature Page
IN THE UNITED STATES DISTRICT COURT
DISTRICT OF UTAH, CENTRAL DIVISION
GREGORY MCEWEN, LARRY PARKER,
and LEONARD LABIAK on behalf of
themselves and all others similarly situated,
SECOND AMENDED
Plaintiffs, CONSOLIDATED
V. Plaintiffs Demand
a Jury Trial
DIGITRAN SYSTEMS, INC. ;
DIGITRAN, INC. ; DONALD G.
GALLENT; LORETTA P. GALLENT;
CHRIS S. COR4Y; HARRIS G.
LEROY, II; JAMES R. BRYAN;
AND GRANT THORNTON,
Civil No. 93-C-728G
(Consolidated Case)
Defendants.
Gregory McEwen, Larry Parker and Leonard Labiak, individually and on behalf
other persons similarly situated ("plaintiffs" or the "Class," as defined below),
SNIPPETS:
Telephone:339-6900 Lead Counsel for Plaintiffs
Gregory McEwen, Larry Parker and Leonard Labiak, individually and on behalf of all
Inc. and related defendant business entities and subsidiaries thereof
recover damages caused by defendants' violations of the federal and Utah securities laws.
The jurisdiction of this Court is based upon the Securities Act of 1933,
the Securities and Exchange Act of 1934,
because defendant Digitran has its principal place of business at 90 North
of Digitran stock on May 10, 1993 at $9.50 per share, for a total purchase amount of
Digitran develops, manufactures and markets simulator training systems, data
Digitran's common stock is listed and, until May 21, 1993, was traded on the
During the Class Period, Digitran was followed by securities analysts and traded
Defendant Grant Thornton is a national firm of certified public accountants and
Thornton notified the Company that it was withdrawing its report dated May 29,
unqualified opinion on the adequacy of the Company's financial statements.
Company's report on Form 10-K for its fiscal year 1992 and its Registration Statement filed
to be false or misleading.
constitute a fraud and deceit upon plaintiffs and the members of the Class.
whether defendants acted knowingly, wilfully, recklessly or with gross negligence in omitting
defendants made public misrepresentations or failed to disclose material
the fiscal year ending 1992 included at least approximately $1.4 million in revenue
Digitran capitalized simulator development costs
Digitran issued an S-l Registration Statement and a Prospectus
the transactions with Formulation Techni-Expert, Operating Engineers Training Institute,
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